Ethereum co-founder Vitalik Buterin has proposed a “modest” increase in the gas limit to improve the throughput of the Ethereum network. This suggestion was made during a Reddit ask-me-anything (AMA) session hosted by the Ethereum Foundation’s research team. Buterin pointed out that the gas limit has remained unchanged for nearly three years, the longest period in the protocol’s history without an increase.
Buterin responded to a question during the AMA, stating, “Honestly, I think doing a modest gas limit increase even today is reasonable.” He recalled that the last increase took place around late 2021 with the implementation of EIP-1559, which doubled the gas limit but only led to a roughly 9% increase in actual average usage.
Buterin suggested a potential gas limit of around 40 million, a 33% increase from the current 30 million gas limit. He reasoned that the gains from Moore’s law post-2021 could be allocated between increased capacity and improved syncing and verification processes, justifying such an increase.
The Ethereum gas limit, a key parameter that affects the network’s ability to process transactions and execute smart contracts, has evolved over time. Buterin’s proposal aims to balance the growing demand on the Ethereum network with efficient syncing and verification processes. As Ethereum continues to develop and undergo network upgrades, decisions about parameters like the gas limit are crucial for maintaining a healthy and scalable blockchain ecosystem.
The cost of transacting on the Ethereum network, measured by gas prices, has surged, currently averaging around 35 gwei, or $1.89. This increase has been significant since the start of 2024, with higher fees observed for complex smart contract operations.
Ethereum gas fees peaked at 150 gwei in May 2023 during the NFT craze. The scalability debate was reignited in November 2023 as fees surged amid another wave of NFT-related activity. Data shows a 141% increase in Ethereum gas fees over the past year, reaching a current fee of 0.9084 USD/tx.
The high fees on Ethereum have prompted users to seek alternative solutions, with layer-2 solutions like Arbitrum gaining popularity due to their promise of faster and cheaper transactions. Ethereum’s modular approach to scalability may take time to fully materialize, leading users to seek more immediate alternatives.
The EIP-4844 upgrade, designed to make it cost-effective to send layer-2 data to the mainnet using blobs, is one potential solution to address high fees. The EIP-4844 upgrade is expected to go live in the first half of 2024.
From a price perspective, Ethereum recently surpassed the $2,130 resistance level that had held for over a year. However, the momentum has slowed, and the price is currently consolidating below the $2,600 level.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | Vitalik Buterin |
| Companies | Ethereum Foundation, Etherscan, Ycharts, Arbitrum |
| Currencies | Ethereum |
| Securities | None |
